DTN Oil Update
Oil Prices Rebound as Trump Pressures Russian Oil Buyers
VIENNA (DTN) -- Oil prices rebounded Wednesday morning after U.S. President Trump reiterated secondary sanctions threats on buyers of Russian crude oil and products. The President suggested to impose additional tariffs on major buyer nations of Russian oil, specifically mentioning India and China.
NYMEX-traded WTI for September delivery rose $1.06 to trade near $66.22 bbl, and ICE Brent for October delivery added $1.03 bbl to $68.67 bbl.
September RBOB gasoline futures gained $0.0306 to $2.1221 gallon, and the front-month ULSD futures contract rose $0.0500 to trade near $2.3002 gallon.
The U.S. Dollar Index softened by 0.211 points to 98.370.
The threat to Russian crude supply supported oil futures prices after a precipitous four-day decline in which they shed nearly 8% following OPEC's decision to accelerate output hikes. Macroeconomic data released Tuesday showing a stagnating U.S. service economy and yet another contraction in the employment index added to demand growth concerns, elevating oversupply risks.
The American Petroleum Institute on Tuesday reported commercial crude oil inventories declining by 4.2 million bbls last week, but a 1.7 million bbl build in Cushing, Oklahoma, the delivery point for NYMEX WTI futures, softened the bullish effect of the large crude oil draw. Official U.S. oil inventory data from the Energy Information Administration is scheduled for 10:30 a.m. EDT release today.
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